Changing patterns of fiscal policy multipliers in Germany, the UK and the US

► We study the evolution of fiscal multipliers for the UK, the US and Germany. ► We use a Factor-Augmented Vector Auto-Regression (FAVAR) approach. ► The estimations are run on rolling windows of 17 years over 1971-1999. ► For Germany, the next tax multiplier is found to follow a hump-shape curve. ► For the US (unlike the UK), short-run multipliers are found broadly stable.